Brazil Cold Chain Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Brazil Cold Chain Logistics Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The Brazilian cold chain logistics market is expected to register a CAGR of over 8.5% during the forecast period (2022-2027).

The COVID-19 pandemic has significantly boosted the domestic e-retailing sector and the consumption of processed foods and beverages, pushing the demand for refrigerated storage spaces and logistics.

Brazil is one of the world's fastest-growing economies and among the top 20 markets in the world for the cold storage industry. The country has a storage capacity of about 6 million cu. m, as per the Global Cold Chain Alliance (GCCA). Brazil is one of the major exporters of fruits, meat, sugar, and soya beans and is developing its cold chain logistics and storage facilities to support the growth expected in the aforementioned sectors.

The Brazilian government has allocated a budget of USD 10 billion to improve the country's infrastructure, aiding the efficiency of the logistics supply chain. The growth of the transport infrastructure and connectivity is expected to drive the growth of the market studied during the forecast period.

2021 was a year of serial difficulties for companies in the Brazilian meat sector. However, 2022 appears more promising. The resumption of beef imports by China, beef and pork imports by Russia, and the continued high demand for these commodities globally are encouraging the leading players in the sector in Brazil.

In November 2021, Russia announced zero import tariffs on beef and pork and import quotas for several countries, including Brazil. The expectation was that, in the first quarter of 2022, the Russian government would carry out inspections to qualify new Brazilian plants for export.

In December 2021, China lifted the embargo on Brazilian beef. The restrictions began after cases of mad cow disease occurred in the states of Minas Gerais and Mato Grosso in September 2021. Brazilian beef exports registered consecutive drops in the following months since its largest buyer decided to suspend shipments.

Following these lows, the meat sector has recovered and improved. This improvement is expected to continue, driving the Brazilian cold chain logistics market during the forecast period.

With the increasing per capita income of the country, people are gradually improving their standards of living and updating their food habits with a shift to packaged, refrigerated, and readymade food items. The increasing per capita income is also fuelling the overall retail grocery spending in the country. All these factors have led to an increase in the consumption of refrigerated and processed foods, which is expected to drive the cold chain logistics market over the forecast period.

The Brazilian cold chain logistics market is highly fragmented, with the presence of both international players and a huge number of local players with smaller fleets. The market is dominated by players like Localfrio, Brado Logistica, and Comfrio.

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